Classification of Law
Indonesia's legal system is a mixture of Roman civil law and Anglo-American common law systems. Civil law operates in areas such as family relations, property, succession, contract, and criminal law, while statutes and principles of common law origin are evident in such areas as constitutional law, procedure, corporations law, taxation, insurance, labour relations, banking and currency.
Civil law systems are based on concepts derived from old Roman law, distinguishable by their reliance on having a comprehensive set of rules and principles codified and easily accessible to both citizens and legal professionals. Codified laws are regularly revised to reflect the current environment, and have stronger emphasis in civil law countries than any precedent set by earlier court cases. Civil law countries cover more than 65% of world’s legal system, including the majority of continental Europe, Central and South America, the Middle East, Asia and Africa.
eSignature Legality Summary
Under Indonesian law, a written signature is not necessarily required for a valid contract - contracts are generally valid if legally competent parties reach an agreement, whether they agree verbally, electronically or in a physical paper document, provided that the basic requirements of a contract under the Indonesian Civil Code are fulfilled i.e., (1) consent; (2) competency; (3) certainty and (4) permissible cause (i.e., it does not contravene the prevailing regulations and principles of public order and morality). The Law No. 11 of 2008 on Electronic Information and Transaction as amended by Law No. 19 of 2016 specifically confirms that electronic contracts are valid and acceptable. To prove a valid contract, parties sometimes have to present evidence in court. Leading digital transaction management solutions can provide electronic records that are admissible in evidence under Article 44 of Law No. 11 of 2008 on Electronic Information and Transaction, to support the existence, authenticity and valid acceptance of a contract.
In practice it should be noted that Indonesian courts have been slow in accepting the concept of electronic signatures and electronic documents. However, Indonesian courts are starting to accept electronic signed documents to be used in a court proceeding. The courts will ask to verify the document first before it can be used. In order to verify the document, the courts will ask to see both the electronic signed document (softcopy through a laptop) and the hardcopy document and ensure that the content of both versions is the same. Therefore, there should be a feature to enable printing of the electronic signed document.
Use Cases for Standard Electronic Signature (SES)
Use cases where an SES may be appropriate include:
- commercial agreements between corporate entities, including NDAs, procurement documents, sales agreements
- consumer agreements, including new retail account opening documents
- real estate documents, including lease agreements, and other related documentation for residential and commercial real estate
Use Cases That Are Not Typically Appropriate for Electronic Signatures or Digital Transaction Management
Use cases that are specifically barred from digital or electronic processes or that include explicit requirements, such as handwritten (e.g. wet ink) signatures or formal notarial process that are not usually compatible with electronic signatures or digital transaction management.
- corporate documents, such as articles of association (and amendments thereto), shareholders resolutions, share/asset transaction documents
- HR documents
- IP transfer documents
- real property transfer contracts and deeds (except lease contracts and other contracts related to real estate, which can be generally signed validly via any form of electronic signature)
- certain corporate documents, such as share/asset transactions documents
 A certified electronic signature must be made by using an electronic certification service provider and needs to be done with an Electronic Certificate. GR 82 also provides that an electronic certification service provider operating in Indonesia must be acknowledged by the Minister of Communications and Informatics.
Local Technology Standards
Government Regulation 82 provides that there are 2 types of electronic signature namely (i) certified and (ii) uncertified. There is no mandatory requirement to have a certified electronic signature. A certified electronic signature has more evidentiary value as an uncertified electronic signature could be challenged. GR 82 provides that a certified electronic signature must be made by using an electronic certification service provider and needs to be done with an Electronic Certificate. GR 82 also provides that an electronic certification service provider operating in Indonesia must be acknowledged by the Minister of Communications and Informatics.
GR 82 provides that electronic certification procedures and registration requirements will be regulated further in a separate Ministerial regulation which has not been issued and still unclear on when it will be issued.
DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing electronic signature may change quickly, so DocuSign cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.
Last updated: November 01, 2019